Eldorado Gold Eyes Billion-Dollar Deal To Bolster Metallic Minerals Empire

Eldorado Gold has announced its intention to acquire Foran Mining through a merger agreement valued at approximately CAD 3.8 billion (USD 2.78 billion), forming a gold-copper mining company that promises to leverage strong metal prices and growing demand for critical minerals.

The strategic move aims to capitalize on the current bull market in precious metals, with gold prices having surged in recent years due to factors such as central bank reserves, economic uncertainty, and shifting investor sentiment. Copper, another key component of the merged entity’s production profile, has also been benefiting from increased demand driven by the global shift towards electric vehicles and renewable energy technologies.

The combined entity, which will integrate development assets in Greece and Canada, is projected to commence commercial production by mid-2026, with plans to ensure long-term cash flow and sustained growth. The transaction will be executed through a court-sanctioned plan of arrangement under the Business Corporations Act (British Columbia) and is expected to conclude in the second quarter of 2026.

Post-merger, Eldorado will hold a 76% ownership stake in the combined entity, while Foran shareholders will retain the remaining 24%. The merged entity’s management team, led by Eldorado CEO George Burns, plans to maintain its headquarters in Vancouver, British Columbia, continuing operations under the Eldorado Gold name.

The strategic move promises significant growth and profitability, with a production target of around 900,000 gold equivalent ounces in 2027. This forecast is based on several key factors, including the successful development of the Skouries and McIlvenna Bay mines in Greece and Canada, which are expected to come online in 2026.

Eldorado’s acquisition of Foran Mining provides an opportunity to tap into the latter’s existing portfolio of projects, including the Tasiast project in Burkina Faso and the Kipembe Tailings Project in Tanzania. These assets are expected to contribute significantly to the merged entity’s production profile.

Expected earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected at USD 2.1 billion, with free cash flow reaching USD 1.5 billion in the same year. These funds are intended to support growth initiatives and shareholder returns.

The merged entity plans to maintain its commitment to environmental sustainability and social responsibility, while also exploring opportunities for responsible mining practices and community engagement.

Foran securityholders will vote on the transaction at a special meeting anticipated by April 14, 2026. Financial advice for Eldorado is being provided by BMO Capital Markets, while RBC Capital Markets delivered an independent fairness opinion.

Eldorado has previously signed a definitive option agreement with TRU Precious Metals to earn an 80% ownership interest in TRU’s Golden Rose gold-copper project in Newfoundland, Canada. This deal represents a significant step forward for Eldorado, which is expected to bolster its presence in the Canadian gold market.

The acquisition of Foran Mining marks another milestone in Eldorado’s strategy to build a stronger and more diversified gold-copper mining company. With a focus on growth, sustainability, and responsible mining practices, Eldorado aims to capitalize on the current bull market in precious metals and critical minerals.

“The combination creates a stronger gold and copper growth company, defined by near-term cash flow generation and multiple catalysts,” said Eldorado CEO George Burns. “With Skouries and McIlvenna Bay scheduled to come online in 2026, the combined business is positioned for a step-change in production, cash flow, and global relevance.”

Eldorado’s commitment to strategic growth and investment in the mining sector has been evident in recent years through its acquisitions of high-quality gold and copper assets. The acquisition of the Golden Lake project in Quebec, Canada, marked an important milestone for Eldorado in 2022.

The growing importance of critical minerals in the global energy transition cannot be overstated. As governments and industries shift towards cleaner energy sources, demand for copper and other critical minerals is expected to increase significantly over the coming years. The acquisition of Foran Mining represents a strategic move by Eldorado to capitalize on this trend.

The deal highlights Eldorado’s focus on responsible mining practices and community engagement. The company plans to maintain its commitment to environmental sustainability and social responsibility, while also exploring opportunities for responsible mining practices and community engagement.

In conclusion, the acquisition of Foran Mining is a significant development in Eldorado’s strategy to build a stronger and more diversified gold-copper mining company. With a focus on growth, sustainability, and responsible mining practices, Eldorado aims to capitalize on the current bull market in precious metals and critical minerals.